In the short run, a perfectly competitive firm earning negative economic profit is
A) on the downward-sloping portion of its ATC curve.
B) at the minimum of its ATC curve.
C) on the upward-sloping portion of its ATC curve.
D) above its ATC curve.
Question 2
The rate at which one input can be reduced per additional unit of the other input, while holding output constant, is measured by the
A) marginal rate of substitution.
B) marginal rate of technical substitution.
C) slope of the isocost curve.
D) average product of the input.
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Economic and Social Development